What is meant by a constrained resource in project management?

In project management, a constrained resource refers to a resource that is in high demand across multiple projects, meaning it cannot be allocated freely to a single project without affecting others. This could include personnel, equipment, or materials that are necessary for project execution but are limited in supply. The presence of a constrained resource may lead to resource contention, where project managers must prioritize which projects receive these limited resources, potentially leading to delays or adjustments in project schedules.

Understanding this concept is vital, as project managers must plan effectively around these constraints to ensure successful project delivery while balancing the demands of multiple initiatives. This entails identifying critical paths and making strategic decisions about resource allocation to optimize project outcomes in the face of these limitations.